[Sitting date: 02 December 2014. Volume:702;Page:10. Text is subject to correction.]

11. KANWALJIT SINGH BAKSHI (National) to the Minister of Commerce and Consumer Affairs : What recent announcements has the Government made regarding responsible lending?

Hon PAUL GOLDSMITH (Minister of Commerce and Consumer Affairs): Recently I released a draft of the Responsible Lending Code for consultation. The code will give lenders guidance on how to implement the new responsible lending obligations set out in the Credit Contracts and Consumer Finance Amendment Act. It will promote the best practices that lenders should follow in order to comply with the binding lender responsibility principles.

Kanwaljit Singh Bakshi : How will the Responsible Lending Code help consumers when borrowing money?

Hon PAUL GOLDSMITH : The code seeks to provide consumers with better access to information and better protection from the predatory practices of loan sharks and unscrupulous pay-day lenders. At the same time, we are conscious of the need to provide sufficient flexibility to avoid imposing unnecessary compliance costs on those lenders who already have good, responsible systems in place. We will be listening carefully to feedback from all interested groups before issuing a final version of the Responsible Lending Code in March 2015.

ENDS

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